The present invention relates generally to the field of marketing, and more particularly to the field of buyer-driven targeting of purchasing entities.
In the U.S. alone, marketers spend more than $230 billion per year on advertisements to acquire new customers. Yet, there is no good way to target these advertisements and promotions at those buyer entitiesxe2x80x94such as individuals and businessesxe2x80x94who are most likely to become valuable customers.
In fact, the customers who take advantage of promotions are often those that are least likely to be valuable repeat customers in the future. For many product categories, the best buyer entities are those that are too busy to hunt for a promotional offer that is available to everyone. An offer of a free sample or a $20 rebate on the first purchase is generally most attractive to those whose opportunity cost of time is the lowest.
Marketers suffer from improper targeting of their promotions and so do buyer entities. If marketers would have a better way of identifying those buyer entities with a high purchase propensity for their products and direct promotions only at them, these promotions would be significantly more lucrative. Marketers would fight for these good customers with better introductory prices and other promotions, as well as with better products and better service. They would be willing to pay or otherwise reward these customers for the right to advertise to them. A marketer who can direct her customer acquisition efforts at those buyer entities who arexe2x80x94on the basis of their past purchase historiesxe2x80x94most likely to become valuable customers can afford to divert resources from less efficient and less targeted advertising channels.
Yet, marketers generally cannot not access information on the purchases of a buyer entity who has not yet been acquired, and on the purchases that an existing or potential customer makes with other companies. It is the object of this invention to solve this problem, and to do so at a minimal loss of privacy to participating buyer entities.
Because information on a buyer entity""s purchases is so valuable, some of the companies that have offered only the slightest, very imprecise and restricted glimpse at a buyer entity""s past purchase history with other companies have been able to reap great rewards in the marketplace. The current efforts by businesses to capture or infer information about a buyer entity""s purchases with other companies can be categorized into two broad categories:
1. Asking buyer entities questions about their purchase interests and/or past purchases with other companies.
2. Establishing a network of non-competing vendors who share information with each other about a customer""s past purchases, and who sell this information to other non-competing businesses.
Both of these methods have significant drawbacks.
The first method is practiced by several direct marketers, such as Fingerhut Companies, Inc, YesMail, MyPoints and Netcentives. These companies ask their members questions relating to their purchase interests and habits for the purpose of sending them targeted advertising messages. The main drawback of this method is that information given by customers about their past purchases cannot be properly verified. In fact, because these companies cannot verify information about purchases obtained in this manner, they cannot pay higher rewards to members who claim to have stronger and more relevant purchase histories without encouraging false or misleading answers. In fact, to date, none of these companies is known to have implemented a system of differential rewards.
Also, buyer entities generally give highly unreliable answers to questions asked by web sites and direct marketing companies, even when their answers do not affect the benefits that they get when using the service. Additionally, answering questions takes time which the buyer entity may not be willing to give and which also ties up the network.
The second method is practiced most prominently by Abacus Direct, which is now a division of Doublecklick, Inc., and which uses purchase records obtained from catalog sellers for marketing research and other marketing purposes.
The main drawback of this method is that Abacus Direct and other companies that compile transaction data from certain marketers cannotxe2x80x94and do notxe2x80x94allow other marketers to use this information for the purpose of directly competing with those who provide the information in the first place.
For instance, a national jeweler might be able to use Abacus Direct to review a list of those who have bought expensive clothing. But Abacus Direct cannot allow him to review a list of consumers who have bought jewelry itself. Abacus would have obtained that list from another jewelry retailer, and is therefore obligated to the provider of that list that it not be used by his competition.
Furthermore, because these companies obtain records from a limited number of marketers, they obtain only very fragmented information on individual customers or business entities. Abacus Direct, for instance, maintains records that cover many million households, but with very limited information about the average household in its database.
Moreover, for these companies, the process of obtaining permission to send Emails to a customer is separate from the process of obtaining information about the customer""s purchases. Email is by far the most powerful direct marketing technology available today. But an established reputable company cannot send Emails to customers without first having obtained the customer""s permission to do so. Therefore, only a small fraction of the purchase records obtained by Abacus Direct are used for the purpose of direct online marketing.
Besides the above described efforts by businesses to capture information about a buyer entity""s past purchase history with other companies, credit card companies or banks working with electronic bill payment and presentment companies can also use the purchase information that they have on many buyer entities for the purpose of targeting advertisements and promotions. However, these players face the same problem than the one described above for networks of non-competing merchants: they cannot allow marketers to use the information that is provided by participating companies for the purpose of competing with the very same companies that provide the information.
A credit card company for instance, like American Express, cannot reasonably hope to retain it""s merchants as clients if it was to potentially use the information obtained from these clients to grant the competition access to its"" clients proprietary customer lists. The same is true for so-called xe2x80x9cElectronic Bill Payment and Presentment Companiesxe2x80x9d (xe2x80x9cEBPP""sxe2x80x9d) such as the Checkfree Corporation, and banks working with EBPP""s to present bills to their customers online. These companies present bills to buyer entities and allow buyer entities to pay these bills electronically. The bills are, generally, directly obtained from billers, the companies that issue those bills. If these EBPP""s or the banks working with these EBPP""s allow other companies to use the bill payment and presentment process for the purpose of promoting products that directly compete with those that are being paid, billers will no longer transmit their bills to these EBPP""s.
Briefly, in one embodiment the present invention comprises a method for buyer-driven targeting comprising the steps of: separately receiving for each of a plurality of buyer entities a respective third party proof of purchase record; entering information from the received proof of purchase records into a searchable electronic database; obtaining search criteria for the database; searching the information in the database using the search criteria to obtain a group of buyer entities; and providing an incentive to each of a plurality of the buyer entities in said group.
In a further aspect of the invention, the providing an incentive step comprises setting the incentive for each buyer entity in the group based on its purchases of a particular product or service. In a further aspect of the invention, the plurality of buyer entities are individual persons.
In a yet further aspect of the invention, the plurality of the buyer entities are corporate or other legal entities.
In a further aspect, the invention comprises the steps of: receiving buyer entity preferences for categories of third parties; wherein the obtaining search criteria step includes receiving a merchant category designation for the third party; and wherein the searching step comprises forming the group of buyer entities who have indicated in their respective buyer preferences that they would receive a marketing incentive from third parties in the merchant category designation.
In a further aspect, the present invention comprises the steps of: receiving a threshold value from the buyer entity that an incentive must meet before the buyer entity will receive the incentive; receiving a value for the incentive to be provided; and wherein the searching step includes the step of comparing the value of the incentive to the threshold value set by the buyer entity and the step of not including that buyer entity in the group if the buyer entity has set a threshold value for the incentive which is not equaled or exceeded.
In a further aspect, the present invention comprises the steps of obtaining information on whether one of the buyer entities accepted the incentive; and inputting this information to the database.
In a further aspect, the present invention comprises the step of obtaining information on whether the buyer entity made a follow-up purchase or a co-purchase contemporaneous with or after accepting the incentive and inputting this information to the purchase record of the buyer entity in the database.
In a further aspect of the present invention the entering step further comprises the categorization of purchases listed from a plurality of independent third parties in the proof of purchase records based on a set of categories.
In a further aspect, the present invention comprises the step of calculating a score for a buyer entity based on the amount purchased in one or more selected categories.
In a further aspect, the present invention comprises the steps of calculating a separate score for a buyer entity in each of a plurality of categories based on the amount purchased by the buyer entity in the respective category; calculating a composite score for a particular buyer entity in accordance with a function of the separate scores for a plurality of selected categories for the particular buyer entity; and creating a group of buyer entities based on the composite scores.
In a further aspect, the present invention comprises the steps of: weighting questions based on scores of the buyer entity; selecting questions, based, at least in part, on the weight given the question; sending questionnaires electronically to a plurality of the buyer entities; and receiving responses to the questionnaire from a plurality of the buyer entities; weighting the responses from at least one of the buyer entities; and recalculating at least one score for the at least one buyer entity based on the weighted responses.
In a further aspect of the present invention, at least one category is an individual company, and wherein the score for that category is calculated based on the amount of purchases indicated by the proof of purchase records for the individual company.
In a further aspect, the present invention comprises the step of sending at least one score of a particular one of the buyer entities to a third party after receipt of an authorization from the particular buyer entity. In a further aspect, the present invention comprises storing electronically at least one score for a buyer entity at a computer of the buyer entity.
In a further aspect of the present invention the storing step comprises storing the at least one score on a cookie.
In another aspect, the present invention further comprises the step of the buyer entity sending the score to a third party.
In another aspect, the present invention further comprises the steps of: recalculating the scores for each of a plurality of buyer entities based on new proof of purchase records entered in the electronic database; comparing the recalculated scores to a threshold; and generating an indication if one of the recalculated scores exceeds the threshold but the score before recalculation did not exceed the threshold.
In a further aspect of the present invention, the indication comprises providing an incentive to a buyer entity with a recalculated score that exceeds the threshold but the score of the buyer entity before recalculation did not exceed the threshold.
In another aspect, the present invention further comprises the step of calculating a fee based on the scores of the buyer entities provided the incentive.
In another aspect, the present invention further comprises the step of obtaining information on whether the buyer entity made a follow-up purchase or a co-purchase contemporaneous with or after accepting an incentive and providing added points over and above the points normally attributed for accepting such an incentive when calculating the score for the buyer entity.
In another aspect, the present invention further comprises the steps of obtaining information on whether one of the buyer entities accepted the incentive; and providing points for accepting the incentive recalculating at least one of the scores for the buyer entity.
In a further aspect of the present invention, the providing an incentive step comprises determining an incentive wherein a type and/or amount of the incentive is selected for the buyer entity by applying the score of the buyer entity to an incentive function.
In a further aspect of the present invention, the providing an incentive step comprises determining an incentive within an incentive structure wherein a type or amount of incentive is provided to the buyer entity based on an electronic input from the buyer entity.
In a further aspect of the present invention, the providing an incentive step comprises determining an incentive from within an incentive structure wherein a type or amount of incentive is provided to the buyer entity based on the buyer entity meeting predetermined search criteria.
In a further aspect of the present invention, the providing an incentive step comprises selecting the incentive based on a first criteria of purchasing of a particular good or service, and a second criteria of a minimum number of different instances when the particular good or service was purchased in a predetermined time period.
In a further aspect of the present invention, the providing an incentive step comprises setting the incentive based on a first criteria of purchasing of a particular good or service, and a second criteria of a minimum monetary value purchased of the particular good or service purchased in a predetermined time period.
In another aspect, the present invention further comprises the step of linking to a third party database and inputting information therefrom on whether the buyer entity made a follow-up purchase or a co-purchase contemporaneous with or after accepting the incentive and inputting this information to the database.
In a further aspect of the present invention, the providing an incentive step comprises including a cookie with the incentive, with the cookie designed to monitor predetermined activity relating to the incentive.
In another aspect, the present invention further comprises the step of submitting a request to one of the buyer entities to provide a rating of a product or service only if the purchase record of the buyer entity shows a purchase of the product or service to be rated.
In a further aspect, the present invention comprises the steps of: weighting each entity submitted rating for a product or service according to the money spent on the particular product or service by the entity; and creating an average rating for the product or service based on the weighted entity submitted ratings.
In a further aspect, the present invention comprises the step of calculating a charge for providing the incentive based on the size of the group of buyer entities resulting from the search.
In a further aspect, the present invention comprises the step of calculating a charge for providing incentives based on a number of elements in the search criteria.
In a further aspect, the present invention comprises the step of calculating a charge for providing the incentive based on both the size of the group of buyer entities resulting from the search and the scores of the, buyer entities.
In a further aspect, the present invention comprises the step of comparing a source of the third party proof of purchase records with a source database of third parties and entering only those proof of purchase records from third party sources that are in the source database.
In a further aspect, the present invention comprises the step of categorizing purchases relative to a database of categories and entering only purchases within selected categories.
In a further aspect of the present invention, the entering step further comprises the categorization of purchases listed from a plurality of independent third parties in the proof of purchase records based on a set of categories; calculating a separate score for a buyer entity in each of a plurality of categories based on the amount purchased by the buyer entity in the respective category; and recording at least one of the scores in a cookie on a buyer entity computer that may be accessed from a communications network by at least one merchant.
In a further aspect, the present invention comprises the steps of: the merchant accessing the cookie and obtaining the at least one score; the merchant correlating the accessed score to at least one item of content; and serving to the buyer entity the at least one item of content.
In a further aspect, the present invention comprises the step of updating the score on the cookie.
In a further aspect, the present invention comprises the steps of: adding the purchase amounts for the buyer entity over a first period of time made from a first merchant to obtain a first merchant purchase amount; determining if the first merchant purchase amount exceed a threshold value; and rewarding the buyer entity for having exceeded the threshold value of purchases.
In a further aspect, the present invention comprises the step of updating the searchable database on a continuous basis; and recalculating the scores on a continuous basis.
In yet a further aspect, the present invention may comprise recalculating at least one score for a buyer entity for one of the categories based on one or more of the entry of new purchase records, responses by the buyer entity to questions, the receipt of third party data base information, information that particular incentives have been accepted, information on follow-up purchases, information on web site visits, information on the television viewing habits or the viewing of a particular television program by that buyer entity.
In yet a further aspect of the present invention, the step is performed of determining if the recalculated score qualifies the one of the buyer entities for an on-going incentive.
In yet a further aspect of the present invention, the step is performed of recalculating the incentive determined in the incentive providing step by applying the recalculated score of the one of the buyer entities to an incentive function.
In yet a further aspect of the present invention, the step is performed of providing a plurality of the incentives from different advertisers to one of the buyer entities, including the steps of determining the sequence or the relative prominence of each of the plurality of the incentive awards based on the recalculated score.
In yet a further aspect of the present invention, the step is performed of monitoring the receiver of an interactive television to determine if an ad has been zapped; and providing an incentive to the buyer entity if the ad has not been zapped.
In yet a further aspect of the present invention, the step is performed of monitoring the receiver of an interactive television to determine if an ad has been zapped; and providing an incentive based to the buyer entity if the ad has not been zapped with the incentive determined in accordance with at least on of the scores of the buyer entity.
In yet a further aspect of the present invention, the step is performed of selecting ads from a storage based on a particular television program being received by a receiver of that buyer entity and displaying those ads in a predetermined sequence.
In yet a further aspect of the present invention, the step is performed of selecting a sequence of ads to be displayed based on a particular television program being received by a receiver of the buyer entity and on the scores of that buyer entity.
In yet a further aspect of the present invention, a step is performed of determining an incentive for viewing a television advertisement based on a particular television program being received by a receiver of the buyer entity.
In yet a further aspect of the present invention, a step is performed of determining an incentive for viewing a television advertisement based on password entered from a receiver of the buyer entity.
In yet a further aspect of the present invention, a step is performed of determining an incentive for viewing a television advertisement based on a predetermined response received from the receiver of the buyer entity and at least one score of the buyer entity.
In a further embodiment of the present invention, a method is provided for buyer-driven targeting comprising the steps of: sending to a buyer entity an offer to provide an incentive in return for address information of the buyer entity; receiving from the buyer entity a response containing the address information; correlating the address information with at least one attribute from a database of attributes of buyer entities in an area indicated by the address information; selecting from a plurality of incentives based on the correlated attribute; and presenting the selected incentive to the buyer entity.
In yet a further embodiment of the present invention, a method is provided for buyer-driven targeting comprising the steps of: sending to a buyer entity an electronic offer for participating in an incentive program in return for access to a purchase information pertaining to the buyer entity from at least three merchants; receiving from the buyer entity an electronic response with a digital identity verification granting a right of access to the purchase information of the merchants; downloading the purchase information from the merchants; electronically searching the purchase information to obtain at least one attribute from the purchase information about the buyer entity; correlating that attribute to an incentive from a plurality of incentives based on the correlated attribute; and presenting the selected incentive to the buyer entity.
In yet a further embodiment of the present invention, a method is provided for buyer-driven targeting comprising the steps of: sending to a buyer entity an offer for participating in an incentive program in return for unverified purchase information pertaining to the buyer entity and access to verification information held by merchants; receiving from the buyer entity an electronic response with the unverified purchase information and a digital identity verification granting a right of access to the buyer entity verification information held by the merchants from whom the purchases were made; making a comparison of the unverified purchase information for the buyer entity and the buyer entity verification information from the merchants to verify that the unverified information is accurate purchase information; electronically searching the accurate purchase information to obtain at least one attribute about the buyer entity; correlating that attribute to an incentive from a plurality of incentives based on the correlated attribute; and presenting the selected incentive to the buyer entity.
In a further aspect, the present invention comprises the steps of: adding the purchase amounts for the buyer entity over a first period of time made from a first merchant to obtain a first merchant purchase amount; determining if the first merchant purchase amount exceed a threshold value; and sending an incentive to the buyer entity for having exceeded the threshold value of purchases.
In yet a further embodiment of the present invention, a system is provided for buyer-driven targeting comprising: a first component to separately receive from each of a plurality of buyer entities a respective third party proof of purchase record; a searchable electronic database to enter the received proof of purchase records; a second component for obtaining search criteria for the database; a search component for searching the proof of purchase records in the database based on the search criteria to obtain a group of buyer entities; and a third component for providing an incentive to each of a plurality of the buyer entities in the group.
In a further aspect of the invention, all of the foregoing method embodiments can be implemented in system embodiments using software components, hardware components, or a combination thereof.
In a further embodiment of the present invention, a method is provided for buyer-driven targeting comprising the steps of: accessing at least one score for a buyer entity based on purchases in one or more selected categories; and selecting and/or sequencing advertisements to be provided to a receiver of a video channel based on at least one score of said buyer entity.
In a further aspect of the invention, the steps are included of receiving third party proof of purchase records for a buyer entity; entering information contained in the received proof of purchase records into a searchable electronic database; categorizing purchases listed from a plurality of independent third parties in the proof of purchase record based on a set of categories; and calculating at least one score for a buyer entity based on purchases in one or more selected categories.
In a further aspect of the invention, the steps are provided of calculating a separate score for a buyer entity in each of a plurality of categories based on the amount purchased by the buyer entity in the respective category; calculating a composite score for a particular buyer entity in accordance with a function of the separate scores for a plurality of selected categories for the particular buyer entity; and wherein said selecting and/or sequencing step comprises selecting and/or sequencing advertisements based in part on the composite score.
In a further aspect of the invention, the step is provided of providing an incentive to the buyer entity for watching a selected advertisement on the video channel based on at least one score of the buyer entity.
In a further aspect of the invention, the step is provided of recalculating at least one score for a buyer entity for one of the categories based on information on the video channel viewing habits or the viewing of a particular television program by that buyer entity.
In a further aspect of the invention, the step is provided of determining if the recalculated score qualifies said one of the buyer entities for an on-going incentive.
In a further aspect of the invention, the step is provided of recalculating an incentive by applying said recalculated score of said buyer entity to an incentive function.
In a further aspect of the invention, the step is included of providing a plurality of said incentive offers from different advertisers to the buyer entity, including the steps of determining the sequence or the relative prominence of each of the plurality of the incentive offers based on said recalculated score.
In a further aspect of the invention, the step is provided of monitoring the receiver of a video channel to determine if an ad is shown by the receiver and has not been zapped by the buyer entity; and providing an incentive reward to the buyer entity if the ad has not been zapped.
In a further aspect of the invention, the incentive reward is a reduction in a pay per view charge for a program being viewed at the same time as the ad.
In a further aspect of the invention, the steps are provided of monitoring the receiver of an interactive video channel to determine if an ad has been zapped; and providing an incentive to the buyer entity if the ad has not been zapped with the incentive determined in accordance with at least one of the scores of the buyer entity.
In a another aspect of the invention, the selecting and/or sequencing step further comprises selecting and/or sequencing ads from a storage based, in part, on a particular video channel program being received by the receiver of that buyer entity.
In a further aspect of the invention, the step is provided of creating a group of buyer entities based at least in part on one or more of said scores; and wherein the selecting and/or sequencing step comprises selecting and/or sequencing advertisements to be provided to the group of buyer entities.
In a further aspect of the invention, the step is provided of determining an incentive for viewing a television advertisement based on a particular video channel program being received by a receiver of the buyer entity.
In a further aspect of the invention, the step is provided of determining an incentive for viewing an advertisement based on a password entered from a receiver of the buyer entity.
In a further aspect of the invention, the step is provided of determining an incentive for viewing a video channel advertisement based on a predetermined response received from the receiver of the buyer entity and at least one score of the buyer entity.
In yet a further embodiment of the present invention, a system and program product is provided for buyer-driven targeting comprising: a component and/or code for accessing at least one score for a buyer entity based on purchases in one or more selected categories; and a component and/or code for selecting and/or sequencing advertisements to be provided a to a receiver of a video channel based on at least one score of said buyer entity.
In a further embodiment of the present invention, a method is provided for buyer-driven targeting, comprising the steps of: recording information into at least one buyer entity profile, such information having been generated as the result of at least one action or activity taken by the at least one buyer entity; calculating for the at least one buyer entity at least one measure which indicates the amount of benefits available to the buyer entity pursuant to the information contained in the at least one profile; and displaying or otherwise providing the at least one measure to the buyer entity.
In a further aspect of the present invention, the displaying or otherwise providing the at least one measure step includes displaying or otherwise providing the measure to the buyer entity either at regular intervals or before and/or after the buyer entity takes certain actions which generate the information which is stored in the profile.
In a further aspect of the present invention, the displaying or otherwise providing step comprises displaying or otherwise providing to the buyer entity the degree or amount that the measure changed during the most recent interval and/or as the result of the most recent action or actions by the buyer entity
In a further aspect of the present invention, the displaying or otherwise providing the change in the measure step comprises quantifying a total or partial value of benefits to which the buyer entity has become entitled as the result of the measure change, and displaying or otherwise providing the buyer entity an estimate of the value of these benefits.
In a further aspect of the present invention, the action is a purchase of a product or service.
In a further aspect of the present invention, the action is responding to an email or clicking a web site ad.
In a further aspect of the present invention, the activity is the buyer entity responding to an advertisement, and wherein the buyer entity profile includes a number indicative of the buyer entity""s purchase history, and wherein the calculating at least one measure step includes the step of determining if the number is at or above a predetermined threshold.
In a yet further embodiment of the present invention, a method is provided for buyer-driven targeting comprising the steps of: obtaining access to a third party proof of purchase record or information contained in these proof of purchase records or information otherwise derived from the purchase records for each of a plurality of buyer entities, and with the help or authorization of each of the buying entities; maintaining a searchable electronic database of information pertaining to buying entities; obtaining search criteria; searching the third party proof of purchase records or the information derived from the purchase records based on the search criteria to obtain a group of buyer entities; and providing an exclusive incentive to each of a plurality of the buyer entities in the group without making the same incentive otherwise available or accessible to most other buying entities.
In a further aspect of the present invention, the step is provided of associating records of purchases of buyer entities to activity of those buyer entities with respect to advertisements based on a criteria; and recording this association in the searchable database.
In a yet further aspect of the present invention, the criteria is that the purchase is made within a predetermined period of time before or after the activity.